Save energy and environmental protection equipment to enjoy preferential tax products will be introduced next year

The product catalogs on preferential tax policies for environmental protection equipment such as water conservation and comprehensive utilization of resources, compiled jointly by the National Development and Reform Commission and the Ministry of Finance, are highly concerned by equipment manufacturing companies. It is reported that the special energy-saving and environmental-protection equipment that companies invest in the product catalogue will be credited to corporate income tax, and enterprises that invest in energy-saving equipment will enjoy preferential policies such as deductions for input tax of VAT.
The National Development and Reform Commission, Deputy Director of the Department of Circumstances, Xie, said recently that the product catalog still under development or will be introduced next year will have a great impact on energy-saving equipment manufacturers and user companies.
At the first high-level forum on energy conservation and environmental protection held in the same period, Shi Yaobin, Director of the Taxation Department of the Ministry of Finance, stated that the country will increase the development and utilization of renewable energy, promote energy conservation, encourage resource conservation and comprehensive utilization, and strengthen environmental protection. The financial support will be adjusted and promoted through the formulation of new taxes.
Equipment technology level is the key to industrial energy saving
Liu Jiansheng, deputy director of the State Council Policy Research Office, has a clear-cut view: “Industrial energy conservation is the top priority for China’s energy conservation and emission reduction efforts. Enhancing the equipment technology level is the key to achieving industrial energy conservation and consumption reduction.”
According to reports, in 2006 China's yuan GDP energy consumption was 1.21 tons of standard coal, 7.5 times that of Japan, 5.5 times that of Germany, and 4.2 times that of the United States. In 2006, China's industrial added value accounted for 43.15% of GDP, and the high proportion of industry in China's economy constitutes an important factor that leads to high energy consumption per unit of GDP in China.
The fundamental way to change this status is to adjust the structure of the economic industry and at the same time strengthen the energy-saving tapping potential within the industry. Liu Jiansheng believes that China's industrial equipment has great potential for energy conservation.
Statistics show that the current industrial energy consumption accounts for 70% of China's energy consumption, and the low level of equipment technology is an important factor leading to high industrial energy consumption. From the perspective of industrial boiler equipment, the annual coal consumption of China's boilers is about 1.9 billion tons, accounting for 80% of coal production. In China's existing 540,000 boiler equipment, most of the operating thermal efficiency is only 68%, 15% to 20% lower than the average level in developed countries. If the thermal efficiency of the boiler is increased by 10%, China can save 60 million tons of coal each year.
“Industrial equipment is not only an important tool for social activities, but also an important carrier for energy consumption.” Liu Jiansheng said that the state will formulate a series of measures that are conducive to energy-saving industrial equipment, on the one hand to speed up the elimination of backward production equipment, especially steel, non-ferrous metals, etc. Energy-consuming industry production equipment; on the one hand, most of the equipment that can not be eliminated and lagging behind will be enhanced with energy-saving reforms to improve its energy-saving level.
He also suggested that relevant departments should formulate industrial equipment energy consumption indicators as soon as possible, such as the development of boiler equipment energy consumption indicators, and establish industrial equipment energy access system.
Xie Ji also pointed out that the promotion of technological progress is the key to achieving the goal of saving energy and reducing consumption in the “Eleventh Five-Year Plan” period. China should speed up the research, development, and promotion of energy-saving technologies and focus on the development of environmental protection technology equipment and basic equipment with independent intellectual property rights.
Preferential tax incentive energy-saving equipment
Ye Ruyu, deputy director of the National People's Congress, said that at present, China's energy-saving fiscal and taxation policies and pricing policies are not complete, and an energy-saving fiscal tax policy system and specific measures should be formed as soon as possible, and tax incentives should be given to energy-saving investments. At the same time, the establishment of a long-term mechanism for energy conservation and emission reduction should be emphasized.
Regarding the orientation of the preferential tax administration, Shi Yaobin stated that the improvement of China’s taxation policy will adhere to the four major principles, namely, the combination of market-led and taxation policy advancement, the standardization of taxation system and the appropriate tilt, the combination of incentive mechanisms and constraints, and overall planning. Step by step implementation of the combination. Relevant departments will establish rewards and penalties in accordance with the above principles. On the one hand, tax incentives will support the conservation of resources and energy and reduce environmental pollution. On the other hand, punitive taxation policies will be implemented for enterprises with high energy consumption, high pollution, and low resource utilization.
In addition to the preparation of relevant energy-saving equipment to enjoy the preferential taxation of the product catalog, Xie also suggested that the country should set up special funds to encourage the purchase of energy-saving equipment, and further improve the government procurement system of energy-saving products. At the same time, we should enlarge and strengthen the high-tech industry, strengthen the adjustment of energy structure, vigorously develop renewable energy sources, and improve related fiscal and taxation policies as soon as possible.

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